Philadelphia-based Jefferson Health is outsourcing some back-office functions, which will affect 171 roles, The Philadelphia Inquirer reported Jan. 10.
Jefferson told the news outlet in a statement that following a thorough review it is "transitioning a limited number of non-patient-facing administrative functions to an external partner to enhance efficiency." The health system said it is providing resources to support affected employees who do not secure new roles within the organization.
The health system declined to name the company with which it is partnering to outsource the positions, according to the report.
The employees affected work in billing, insurance preauthorization and clinical documentation, according to the report. Most of the employees work remotely.
Jefferson did not immediately respond to Becker's requests seeking comment regarding the outsourcing.
Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, posted a $77.6 million operating loss (-3% margin) in the first fiscal quarter of 2025 — ended Sept. 30 — compared to a $48 million operating loss (-2% margin) in the same quarter last year.
Jefferson merged with Allentown, Pa.-based Lehigh Valley Health Network on Aug. 1. The systems' reporting requirements had not been consolidated for the first quarter of 2025. Lehigh Valley Health reported a $12.9 million operating loss (-1.1% operating margin) in the first quarter, an improvement from an operating loss of $36.2 million (-3.5% margin) during the same period last year.
In November, the health system said it was delaying a 3% pay increase for more than 42,000 employees from January to July as part of its plan to strengthen financial performance.